Abstract:The growth pattern of China’s economy has entered a changing period under the pressure that it cannot keep on the high growth as the past thirty years. Using an extended model of Douglas-Cobb’s economic growth function, the paper presents a systematic view about the contributions and fading out of the economic growth factors including technology, capital, labor, market, resource, and environment from the two perspectives of opening and reform. Moreover, due to the slow pace of institutional reform, a mass of social problems has been accumulated. And the Sub-prime Debt Crisis and the European Debt Crisis have been changing the international economic ecosystem. Therefore, the current economic growth pattern is now sustainable. However, with a huge population, China still has vast development potential, and its hidden growth power is very large. A perfect condition for transforming the current economic growth pattern to a sustainable one is mature. To ensure the smooth transformation, we suggest that the government should take an active transformation to release economic potential, coordinate the balanced development of economy and science, deepen institutional reforms to address China’s economic and social problems, build an institutional base for long term economic growth, layout inner transformation based on global economic re-balancing, and improve both monetary policy and public financial policy to better serve the economic transformation.